[ad_1]
<div _ngcontent-c15 = "" innerhtml = "
As an individual investor, if you are looking for shares in a premier oil company and you want to get a regular dividend, then Royal Dutch Shell should be at the top of the list or almost. The Anglo-Dutch company has not been short of dividends since the end of the Second World War and has been for decades a preferred stock for many investment managers and trusts.
In June, using a comparative analysis of sales, profits, assets and market value, Forbes ranked Shell (11th) before ExxonMobil (13th) in the publication Global 2000 list of the world's largest companies for 2018.
As is often the case for a company the size of Shell, it has a double listing, ie its shares are traded on stock exchanges in different countries. The practice is quite common and the stock price on the secondary stock exchanges closely follows the main listing – which in the case of Shell is that of the London Stock Exchange – followed by the Amsterdam and New York Stock Exchanges.
Logo of Royal Dutch Shell at the 21st World Petroleum Congress, Moscow, Russia © Gaurav Sharma, June 2014Gaurav Sharma
If you have decided to hold Shell shares among your dividend paying shares, it can be extremely difficult to know which exchange to choose. It's easy to think that trading does not matter because shares often have similar voting rights. The declared dividend is universal, the payment being subject to fluctuations in exchange rates.
While such an assumption is correct, it misses a key point – the rate of withholding tax on dividends – that is different in each country and that would affect your income. In the case of Shell, the company's "A" shares (LON: RDSA) are listed on the AEX / Euronext in the Netherlands and the "B" shares (LON: RDSB) on the London Stock Exchange at UK.
This last group of shares is the main listing of the major oil, but both sets of shares are available via London. They also give Shell the status of FTSE 100 company; the coveted reference for the largest listed companies in London.
In accordance with the standard, "A" and "B" shares have the same voting rights, the same level of ownership and the same dividends as you expect. But for UK and global investors in general, to the exclusion of US investors, it would be better to buy "B" shares because "A" shares are tied to the Dutch tax system that provides for dividends paid to third countries. residents less a withholding tax of 15%.
On the contrary, "B" shares listed on the London Stock Exchange are not subject to any withholding tax on the payment of the dividend, which makes it possible to pay the entire dividend (by the shares held) in the holders' coffers.
Royal Dutch Shell (LON: RDSB) Main trading price from October 2017 to September 2018(Source: Reuters, LSE)
Of course, for EU "A" or "B" shares of residents do not make a big difference because there is no withholding tax on dividends in the EU, although UK investors, as mentioned here above, with little clarity on what would be the mutual fiscal arrangements after Brexit.
US investors can work around this problem because Shell is listed in New York and can maximize their earnings by switching to the company's "B" shares (NYSE: RDS.B) instead of "A" shares (NYSE: RDS. AT). Canadian investors should either choose London or New York B shares.
In the end, choosing the right swap could have a big impact on your dividend income. For example, Shell's latest quarterly dividend distribution, reported in August 2018, is $ 0.47 per share. If you hold "B" shares, you end up cashing them, subject to currency fluctuations depending on where you are.
However, if you hold "A" shares, you will get $ 0.3995 unless you are a resident of the EU. Whatever level your participation is or could be, it's a huge difference. It is therefore imperative to choose the right list before you buy.
Disclaimer: The above article takes into account tax rates and applicable laws at the time of writing, which may change at any time. The contents of this document do not constitute a solicitation, recommendation or investment advice to trade the shares of the aforementioned company and / or futures, options or oil and gas products. Oil and gas markets can be very volatile and opinions in the sector and the companies that operate in them can change instantly and without notice.
">
As an individual investor, if you are looking for shares of a premier oil and gas company and you benefit from a regular dividend income, Royal Dutch Shell should be at the top of your list . The Anglo-Dutch company has not been short of dividends since the end of the Second World War and has been for decades a preferred stock for many investment managers and trusts.
In June, using a combination of sales, profits, assets and market value, Forbes ranked Shell (11th) over ExxonMobil (13th) in the publication Global 2000 list of the world's largest companies for 2018.
As is often the case for a company the size of Shell, it has a double listing, ie its shares are traded on stock exchanges in different countries. The practice is quite common and the stock price on the secondary stock exchanges closely follows the main listing – which in the case of Shell is that of the London Stock Exchange – followed by the Amsterdam and New York Stock Exchanges.
Logo of Royal Dutch Shell at the 21st World Petroleum Congress, Moscow, Russia © Gaurav Sharma, June 2014Gaurav Sharma
If you have decided to hold Shell shares among your dividend paying shares, it can be extremely difficult to know which exchange to choose. It's easy to think that trading does not matter because shares often have similar voting rights. The declared dividend is universal, the payment being subject to fluctuations in exchange rates.
While such an assumption is correct, it misses a key point – the rate of withholding tax on dividends – that is different in each country and that would affect your income. In the case of Shell, the company's "A" shares (LON: RDSA) are listed on the AEX / Euronext in the Netherlands and the "B" shares (LON: RDSB) on the London Stock Exchange at UK.
This last group of shares is the main listing of the major oil, but both sets of shares are available via London. They also give Shell the status of FTSE 100 company; the coveted reference for the largest listed companies in London.
In accordance with the standard, "A" and "B" shares have the same voting rights, the same level of ownership and the same dividends as you expect. But for UK and global investors in general, to the exclusion of US investors, it would be wiser to buy "B" shares, as these are tied to the Dutch tax system that sees dividends paid to countries not members of the European Union (EU). residents less a withholding tax of 15%.
On the contrary, "B" shares listed on the London Stock Exchange are not subject to any withholding tax on the payment of the dividend, which makes it possible to pay the entire dividend (by the shares held) in the holders' coffers.
Royal Dutch Shell (LON: RDSB) Main trading price from October 2017 to September 2018(Source: Reuters, LSE)
Of course, for EU "A" or "B" shares of residents do not make a big difference because there is no withholding tax on dividends in the EU, although investors British, as mentioned above, should generally opt for "B" shares. , with little clarity on what would be the mutual fiscal arrangements after Brexit.
US investors can work around this problem because Shell is listed in New York and can maximize their earnings by switching to the company's "B" shares (NYSE: RDS.B) instead of "A" shares (NYSE: RDS. AT). Canadian investors should either choose London or New York.
In the end, choosing the right swap could have a big impact on your dividend income. For example, Shell's latest quarterly dividend distribution, reported in August 2018, is $ 0.47 per share. If you hold "B" shares, you end up cashing them, subject to currency fluctuations depending on where you are.
However, if you hold "A" shares, you would earn $ 0.3995 unless you reside in the EU. Whatever level your participation is or could be, it's a huge difference. It is therefore imperative to choose the right list before you buy.
Disclaimer: The above article takes into account the tax rates and laws in effect at the time of writing this document, which may be changed at any time. The information contained in this document does not constitute a solicitation, recommendation or investment advice to exchange the shares of the aforementioned company, and / or futures, options or oil and gas products. Oil and gas markets can be very volatile and the views of the industry and the companies that operate there can change instantly and without notice.
